Mud crabs set for China

A LOCALLY-owned company will start exporting live mud crabs to China later this year under a memorandum of agreement (MOA) it signed with the National Fisheries Authority (NFA) this week.
The MOA for the mud crab export supply chain project would enable Zavath Seafoods Ltd to buy from local suppliers around the country, package them and airfreight them to China.
NFA acting managing director Justin Ilakini said the Government through the NFA recognised the need to establish a mud crab export supply chain project to enable village-based mud crab harvesters have access to an overseas market.
He said this was in response to the trade protocol agreement signed between China and Papua New Guinea on Feb 5 in Beijing by the Chinese minister of agriculture and his PNG counterpart Dr Lino Tom.
The project aims to address the disconnected system in live mud crab exports in which exporters are currently relying on direct wild catches which results in low export quality and the aim of the project is to build supply chain infrastructure that can assure benefits to resource owners and enable an export quality product.
Under the MOA, signed by Ilakini and Zavath Seafoods director Alphonse Wong Parpa, the state agency would make available to the company grant funding to build supply chain connectivity from rural fishermen to packing and export via airfreight.
The supply chain programme encompasses the establishment of third party entry into the Chinese market pending the approval of PNG’s first list of live crab exporters to the Chinese mainland market directly, and the establishment of crab fattening projects throughout PNG’s maritime provinces especially where mud crabs are prevalent.
NFA, under its industry development programme, would grant financial and technical support for the establishment of live crab export supply chain platforms.
Various sites in the country would be negotiated with resource owners to establish crab fattening facilities to bring crabs to export quality size.
While awaiting the registration of the PNG live exporters on the General Administration of China Customs upon the signing of the trade protocol agreement, Zavath Seafods Ltd will establish re-export establishments in third countries like Singapore or special administrative regions of China like Hong Kong.
NFA has halted the export of live mud crabs because the maximum export quota was reached at the end of last year however, the restriction will be lifted next month or in June.